Tesla stock slips to two-year low

Tesla stock slips to two-year low

Tesla Chief Executive Elon Musk has again sold shares in the company. Taking advantage of the very high valuation of the car manufacturer, the sulphurous boss sold the equivalent of 3.6 billion dollars (3.38 billion euros), bringing the total amount of his sales in 2022 to nearly 40 billion euros. dollars (about 37.5 billion euros). Thursday, December 15, at the close of the markets, the title of the company evolved to 156.8 dollars. A level that the company had not seen since 2020.

The Tesla boss sold 22 million shares of the automaker in three days, from Monday December 12 to Wednesday December 14, a stock market document shows. This is Elon Musk’s second biggest sale since buying Twitter in October, when he assured in April that he would no longer sell Tesla shares.

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Tesla and Elon Musk did not immediately respond to a request for comment. Elon Musk’s stake in Tesla thus rose to 13.4% from 17% a year earlier, according to Refinitiv data.

Elon Musk annoys investors

It’s unclear if the sales are tied to the Twitter acquisition, but they’re riling investors who feel it’s diverting attention and resources to Twitter at Tesla’s expense. “It doesn’t put much faith in the company, or say a lot about where Elon Musk’s attention is,” said Tony Sycamore, an analyst at IG Markets.

Wedbush star analyst Dan Ives was tougher on Elon Musk’s mistakes. “The Twitter nightmare continues as Musk uses Tesla as his own cash machine to continue funding Twitter’s debt, which is getting worse by the day as advertisers flee the platform,” the analyst said. Dan Ives, like other analysts, however, is optimistic about Tesla’s long-term future.

“The next few months will be a huge test for Tesla”

“The next few months will be a huge test for Tesla, which will have to deal with low investor confidence, ongoing problems in China, question marks over demand and a deterioration in the reputation of the brand”, considers de his side Josh Gilbert, an analyst at eToro.

Tesla stock has lost half of its market value in 2022, underperforming both the U.S. automakers index and the Nasdaq, which has lost around 30% of its value. “Tesla will be great in the long run, but don’t control the macro tides,” Elon Musk said Dec. 13.

Simon Chodorge, with Reuters (Reporting Maria Ponnezhath in Bangalore and Hyunjoo Jin in San Francisco, with contributions from Tiyashi Datta and Akash Sriram in Bangalore and Tom Westbrook in Singapore; French version Federica Mileo, editing by Kate Entringer)